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2022-12-31-accounts

REGISTERED CHARITY NUMBER: 1102820

REGISTERED COMPANY NUMBER: 05046531

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

SOUTH HILL CENTRE

SOUTH HILL CENTRE

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

Page
Company Information 1
Report of the Directors 2 to 8
Independent Examiner's Report 9
Statement of Financial Activities 10
Statement of Financial Position 11
Statement of Cash Flows 12
Notes to the Statement of Cash Flows 13
Notes to the Financial Statements 14 to 22
Detailed Statement of Financial Activities 23 to 24

SOUTH HILL CENTRE

COMPANY INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2022

Registered Charity number

1102820

Registered Company number 05046531

Principal address

Cemetery Hill Hemel Hempstead Hertfordshire HP1 1JF

Directors

Mr R G Oakes (Chairman) Mr B L Boggis Mr A M Boswell (Died 6th December 2022) Mr P J Mann Mrs K S McKerrell (appointed 14th June 2023) Mr S R Moh (appointed 20th April 2023) Mr G D Wright

Independent Examiner

J Irvinesmith FCIE Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF

Solicitors

Pothecary Witham Weld 70 St George's Square London SW1V 3RD

Bankers

Santander UK PLC PO Box 1125 Bradford BD1 9PG

Accountants

Acuity Professional Ltd Fifth Floor 11 Leadenhall Street London EC3V 1LP

Page 1

SOUTH HILL CENTRE

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2022

The directors present their report and the financial statements of the Company for the year ended 31st December 2022.

Constitution and Governance

South Hill Centre is a charitable company limited by guarantee, incorporated on 17th February 2004 and registered as a Charity on 24th March 2004.

The Company is established under a Memorandum of Association incorporated on 17th February 2004 as amended by special resolution dated 18th November 2012 which sets out its objects and powers. It is governed under its Articles of Association. It was born out of South Hill Church (Hemel Hempstead), which is also a charitable company limited by guarantee.

The Directors have dual roles, the other being as Trustees of the Charity for the purpose of charity law. The Directors who have served during the period and up to the date of this report are:

B L Boggis

P J Mann K S McKerrell (from 14th June 2023) S R Moh (from 20th April 2023) R G Oakes (Chair) G D Wright

Sadly Sandy (A. M. Boswell), who has been a Director and Company Secretary since the company was set up, died on 6th December 2022. We have valued Sandy's contribution to our meetings and also his professional help with health and safety matters. We shall miss him.

We have appointed Sebastian Moh and Katherine McKerrell to the Board. Seb brings considerable charity experience and Kath significant education experience to the Board which will strengthen our skill base. Kath is also chair of Trustees for our sister charity, South Hill Church. Each Director has significant professional skills and recognises the importance of personal training. They have all attended appropriate training courses in the past and they are all expected to keep up to date with developments in Trustee and Director responsibilities. Training may be specialist in nature depending on the responsibilities the Director has. They are all committed to the aims and objectives of the charity. The Directors have purchased Trustee indemnity insurance.

Jeremy Keeley remains our full time Development and Operations manager and manages the Company very effectively under the guidance and direction of the Directors, who carry out some of the executive functions on a voluntary basis.

The Centre employs staff in Young Discoverers (YD), the pre-school run by the Company, other activities and to provide reception, housekeeping and administrative support to the Company. We are pleased to have confirmed the appointment of Theresa Cartwright as manager of Young Discoverers.

Page 2

SOUTH HILL CENTRE

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2022

OBJECTIVES AND ACTIVITIES

Aims and Objectives for the Public Benefit

The directors are aware of their responsibilities to promote activities for the public benefit. South Hill Centre exists to improve the conditions of life for those in the local community of Hemel Hempstead and the surrounding area. This is achieved by the provision of high quality childcare services alongside activities and services to the benefit of other members of the community from toddlers to senior citizens, as described below.

Our vision is 'To be all that God is calling us to be. To demonstrate His love through improving the quality of life for those in our community, building life-long relationships and demonstrating excellence in all we do.'

As a Christian based charity, the Centre's aims are to:

Main Objectives for 2022

The main objectives for 2022 and their achievement are set out in the table below:

OBJECTIVES

Develop our relationship with South Hill Church which is important to us and provides the motivation for many of the community activities which we organise through the Centre. In particular, to strengthen the relationship between YD and South Hill Church and other Centre activities, for both employees and users of the service. We shall continue to develop this "hand in glove" relationship.

ACHIEVEMENTS

This objective is one which we retain from year to year. It has been at the forefront of our minds since the Pandemic.

Explore with some of our partners further services we can offer to some of the most vulnerable in the community.

This has continued throughout the year and we have increased our support to those who are most vulnerable.

To rebuild those activities which have been hibernated during the Pandemic but which are still appropriate in the new circumstances we face.

We have recommenced our activities. Some of these continued to be held on-line but where face to face meeting was possible it is encouraged.

Ensure the continued viability of our Young Discoverers Pre-school (YD).

YD provides care for all categories of children within the appropriate age groups. Our new manager is now well established and is focussing on meeting the appropriate standards as required by Ofsted from a secure professional base

To generate hire income as those activities which are in line with our objectives wish to recommence.

We saw a significant increase in hiring opportunities later in the year and income from these together with significant grant income has resultedin a satisfactory financial result. We value the support of those who help fund our services.

Review the responsibilities of some of our senior staff with a view to possible further appointments to strengthen our administration.

This objective is being followed through satisfactorily.

Page 3

SOUTH HILL CENTRE

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2022

Aims and Objectives for the Public Benefit (Continued)

2022 proved to be a year of good recovery for our other operations. The Centre continued to provide on-going services to the local community and bounced back strongly from the impact of the global COVID-19 pandemic. Following the pandemic services continued to operate both on-line as well as in person, although the latter was encouraged in order to build strong relationships and encourage the physical and mental wellbeing of those whom we support.

The Centre continued to deliver services to support the most vulnerable in the community. This included employment support through the STRIVE project, in partnership with Herts County Council and other County based providers. The project was part of the Building Better Opportunities Initiative funded by The Big Lottery with match funding from the European Social Fund and aimed to engage with those furthest away from the job market to encourage and support them towards employability addressing barriers they may face to getting there. This project came to an end at the end of 2022 but employability services continued through our 'Hemel Hempstead Employability and Wellbeing Hub'

The Centre continued to build on its excellent relationships with Job Centre Plus and many other private and charitable organisations who work locally to support the unemployed. Engagement with new and existing service users was through a regular twice weekly drop-in. Support offered included: CV writing, career development, addiction support, housing support; business awareness, confidence building, wellbeing support and a number of basic and more advanced IT/Maths/English courses. The Centre also provided support for those with physical disabilities and those with other significant barriers to employment (drug/alcohol abuse; mental health; homelessness; criminal record etc.). The Hub also incorporates the 'Dacorum Healthy Hub' and working with Dacorum Borough Council, promotes wellbeing through the services that this offers. It also provided a 'warm space', offering free food and refreshments to some of the hardest to reach over the winter period.

In 2022 the Centre commenced the 'Multiply' project, in partnership with Herts County Council and other County based providers. This project aims to improve numeracy and basic budgeting skills of those who have not attained appropriate maths qualifications in the past. The Centre utilised its Hub to promote the project and engage those relevant for the support being offered.

Young Discoverers (YD), our charity run pre-school which operates in the Early Years Centre (EYC) building, has remained open throughout the year, offering term time sessions and holiday clubs, subject to demand. The local Nursery made the decision not to utilise one of the YD playrooms as they had previously done. Staff and management have therefore increased capacity and extended their provision across the whole building to provide an excellent service. Its pre-school sessions and nursery class is spread over 5 days each week and take up continues to be high. In 2022 the Pre-School decided to close its extended care facilities for those children who attend YD, as the service was not well used and persisted in making a financial loss. YD maintains its Ofsted rating of "Good". Theresa Cartwright continues as Manager of YD and has focused on challenge faced, particularly staffing levels during this difficult year. She is responsible to the Directors for the effective running of the Pre-School.

Following a successful pilot in 2021, the Centre also commenced a new activity called 'SHC Gets Activity', supported by a grant from the Public Mental Health team at Hertfordshire County Council. This project worked in partnership with the local Sports Space (Everyone Active) to provide access to physical activities such as badminton, table tennis as well as offering group engagement activities, aimed at improving both physical and mental wellbeing of those attending. Between 20-35 individuals regularly attended these weekly sessions.

Squealers, our carers and toddlers group, which now provides 1 session per week to some 10-20 toddlers, continued to operate successfully; as did Table Talk Plus, a luncheon club, which meets on the first Thursday of each month with over 40 clients at each session,.

During this period the Centre continued its work providing support for some of the most vulnerable women in the local area - particularly those impacted by the significant increase seen in Domestic Abuse. Several virtual support sessions and targeted online courses were held to support the ladies and help them move on in a positive direction with their lives. This work continued to be supported in Q1 2021 by funds from the Hertfordshire Police and Crime Commissioner (MOJ funding) and subsequently from the Batchworth Trust and several other local grant makers and donors.

In order to connect with some of the neediest people in the area, the Centre has continued as a distribution centre and voucher issuer for the DENS Dacorum Foodbank. This service offers parcels 5 days a week and saw a significant increase in demand in this financial year as the impact of the 'Cost of Living' crisis was felt.

Page 4

SOUTH HILL CENTRE

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2022

Aims and Objectives for the Public Benefit (Continued)

The Centre continued to host the Hemel Morning Deaf Group and provided links with Herts Vision Loss and 'Talking Newspapers group' to support individuals impacted by these disabilities in the local area. Both of these attend the Centre on a regular basis.

In addition to the above, the local area saw an increase in demand for support for Refugees and Asylum Seekers. The Centre opened its doors to offering support and saw an influx of new needs. Specific support was offered to locally displaced Ukrainians, including hosting a traditional Christmas event. The Centre developed a new activity called 'SHC International' and reached out to all communities and saw several hundred come through the doors during the last quarter of 2022.

By the end of this period the Centre had seen a growth in the demand from other charitable and socially focussed organisations to hire Centre facilities. Hirers included: Step 2 Skills (formally HAFLS); Whizz-Kidz; Carers in Herts, NHS Wellbeing Teams, Dacorum Borough Council, Hertfordshire County Council, Playfeet Theatre Company, Rock Choir, Shaw Trust, London Show Choir, Hart Learning (part of North Herts College), Free 2 Learn amongst many others. Collectively they provided training, advice, activities and support to the local community and hosted many community wide events. All of these organisations, many of which operate in the third sector, were involved in running activities which meet some of the aims and charitable objectives of the Centre as outlined above.

The charity's facilities continued to be used by South Hill Church for weddings, funerals, Sunday services and other Christian activities. Over Christmas the charity ran its second successful Christmas Carol event, which saw members of a local choir sing outside the building to encourage the local neighbours to join in and receive some Christmas cheer.

The Directors are very grateful to the staff and volunteers who helped with all the activities which we have been able to provide during the year. Many of those who have served are members of South Hill Church who give freely of their time. We are pleased that volunteers from the local community also work with us. The Directors provide their time voluntarily.

Main Objectives for 2023

The main objectives for 2023 are to:

Page 5

SOUTH HILL CENTRE

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2022

FINANCIAL REVIEW

.

The Centre has a brought forward surplus of £1,334,274 and the surplus of incoming resources for the year was £30,599. The remaining surplus balance of £1,364,873 will be carried forward to the next year. The total income for the year was £527,691 (2021:£472,175).

Young Discovers is self-funding by way of local authority grants, fees received and fundraising activities. Grants of £115,969 (2021: £132,695) and student fees of £28,294 (2021: £37,513) were received in the year.

The Directors acknowledge the generous giving by the Charity's supporters. Many of these are members of South Hill Church and during the year these supporters gave either directly (including Gift Aid where appropriate) or indirectly some £7,290 (2021: £10,139).

The total expenditure for the year was £497,092 (2021: £481,592) all of which was spent on charitable activities and governance costs.

At the year end, the Company had net assets of £1,364,873 (2021: £1,334,274) represented by unrestricted funds of £254,380 (2021:£263,915) and restricted funds of £1,110,493 (2021: £1,070,359). All grants received from the local authority to the preschool are treated as restricted, but other income, mainly comprisin g fees paid by parents where grant is not receivable in respec t of particular children, is unrestricted. The remainder of the unrestricted fund includes designated gifts and grants which the Centre has obtained.

The Centre has continued to pay off the mortgage from Kingdom Bank and it is encouraging to see a total repayment of £47,125 (Capital repayment of £26,447 and interest £20,678) during the period through the Centre's normal monthly payments.

The Directors are aware of the limits provided by the Financial Services Compensation Scheme and are seeking alternative secure deposit arrangements for some of the funds currently held by Santander.

The Directors would like to thank Aneena Kuku and her staff at Acuity Professional for their assistance in maintaining the accounting records during the year and the preparation of these financial statements. A number of other volunteers provide financial informatio n for the activities with which they are involved, and our thanks are extended to these, and also Naomi Keeley our financial administrator.

Reserves policy and going concern

Reserves are needed to bridge the gap between the spending and receiving of income and to cover unplanned emergency repairs and other expenditure. The Directors recognise that it is best practice for charity operations to retain funds representing at least 3 months expenditure in the Company's bank accounts for contingency purposes. This is based on the charity's size and the level of its financial commitment. The Directors seek to manage this for both Young Discoverers and the charity's other activities and this has been achieved in the year. The Directors will ensure the charity is able to continue to fulfil its charitable obligations and will seek to maintain this level of reserves in 2023.

The Directors believe their future plans provide for a flow of funds which will maintain the financial viability of the Company. Monthly management accounts and cash flow projections are prepared and compared with the annual budget, which is regularly reviewed against actual figures. We are also seeking new sources of finance and new projects are not initiated until their financial requirements are forecast and assessed within the overall financial position of the Company.

The Directors have reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future, thus we continue to adopt the going concern basis in preparing the financial statements.

.

Page 6

SOUTH HILL CENTRE

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.

Risk management

The Directors are aware of their responsibility to properly manage and mitigate the risks faced by the Company. As such, Board representatives, the Operations Manager and the Young Discoverer's Manager review and update a schedule of the major governance, operational, financial, and external risks facing the Company at least annually. They identify the likelihood and potential impact of each risk along with preventative measures, adopted or planned, to mitigate these. The Board then considers the resultant schedule and its conclusions, endorsing a final register of risks which are reviewed throughout the year, along with emerging risks which might affect the Company; any financial implications are incorporated into the annual budget process.

The Board is satisfied that the major risks facing the Company have been identified and are being appropriately addressed. In particular, the Board considers that the key risks currently facing the Company are as follows.

The Board can confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to manage these risks.

Page 7

REPORT OFTHE DIREcfoRS FOR THE YEAR ENDED 31 DECEMBÉR 2022 STATEMENT OF DIRECTORS, B£SfONSIBILITtES Cornpany and Charity rcquire Dirrthrs ￿ pw a Directorf Re￿t a￿1 the fllwicial staments in acwTdaD¢¢ with applicable law and re￿llatIons. The acC(K￿ts for eacb fmallcial year are reqlliT￿ to give a true and fair view of the slaie of affai￿ of the Company alld of the Surp1￿ or deficit of the CO￿panY forthat perio In prepanng these accounts, the Dirxlors are requtsed to . select suitable accounting polictes and then apply th¢m Consis￿dy. - observe the meth￿S and prnciples in the Chariry SOB?" . D￿k¢ judgements a]Ml estirna￿ that arernsothle andpnthi . state whethet applicable accounting bave tttD followe¢ thject to anymaterial deparths disclo￿1 al￿ explained in the financial state￿ellts: . prepa￿ the fiuaDcia] statements on the going concern UDl4ss tr is iDapprwiate to p￿SUrne the charity will Cothinlle in business. The dtrectors a￿ responsil)le for keepiDg pmper xcoun¢ing records which di￿lOse with Teasonable aecw * any tirne the fillancial position of tbe charity and io enable them to ensutt that the financial ststemeDts Comply with the Cbarities Act 20II. the Charity IA¢counts and Rwtts) RegulatiODS 2008 and the pTh>visioLs of th¢ ttust dee They are also tespoJJsibl¢ for safeguarding tbe &wts of the ¢barity and bence foE taking r¢•sollable stcps foT the prevention aod detection of fraud and otber irtr8ulan"tics. The Dirwtors have overall wx)Thsibiiity etigjriog the Cowy Ills appmprnte systen￿ of inretnaj Control acrn￿ the entile orgaDisth¢)n The systw of int¢Tnat o)lltrol &e deSh￿￿d to provide reawnable bLtt not absolute a5suranrt confimi so far ￿ they are each aw4T¢there is ￿ relevdnt inforn)iou of Vbicb the ltsndem Examioer is unaware and each Diredor bas tsken all the sy that b¢ ougtLt w bave tskell as a d]r￿tDf ￿ I[￿ke hxD)self awatr of any relevant jnformaiion and to estsblÈsh that the ltndeffj Exati)i￿r is aware 0fthat]nforn￿io RelAted psrtles The Company h&s llo related parties other than as dtsciosed in Note 7 to the Attounts, but bas WOTked closelv with ]nally different agencies. In Wtujlar DE￿ctO￿ V8h￿ the support of Harfordth CouDty Couucil. Da¢or%￿ Borough Couwil and S¢yMh Hill ChuttlL De¢knrntio45 Approved by orderof theboardof d1￿ctOrS on...._.... ... ....... ............ .. ardSig￿l0￿ its bebalf by: Mr P J Mann. Secretary

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SOUTH HILL CENTRE

I report to the trustees on my examination of the accounts of the South Hill Centre for the year ended 31st December 2022.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination, I have followed the directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I a member of Association of Charity Independent Examiner, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

J Irvinesmith Fellow of the Association of Charity Independent Examiners

Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham, West Sussex UNITED KINGDOM PO18 8NF

Date: ............................................. 28th September 2023

Page 9

SOUTH HILL CENTRE

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

----- Start of picture text -----
2022 2021
Unrestricted Restricted Total Total
fund funds funds funds
Notes £ £ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 2 96,929 261,354 358,283 323,543
Charitable activities 5
Rental Income 135,883 - 135,883 66,623
Activity fees 28,295 - 28,295 38,073
Other trading activities 3 1,532 3,549- 5,081 43,371
Investment income 4 149 - 149 565
Total 262,788 264,903 527,691 472,175
EXPENDITURE ON
Charitable activities 6
Charitable Activities 204,100 292,992 497,092 481,592
NET INCOME/(EXPENDITURE) 58,688 (28,089) 30,599 (9,417)
Transfers between funds 17 (68,223) 68,223 - -
Net movement in funds (9,535) 40,134 30,599 (9,417)
RECONCILIATION OF FUNDS
Total funds brought forward 263,915 1,070,359 1,334,274 1,343,691
TOTAL FUNDS CARRIED FORWARD 254,380 1,110,493 1,364,873 1,334,274
----- End of picture text -----

The notes form part of these financial statements

Page 10

sourH HILL CEfTRE STATEMENT OF Flh'LNCIAL posmo 31 DECEMBER 21122 2022 Totsj fuJ¥ls 2021 Total fund5 FIXED ASSETS Tangible &￿ts 10 IQ145 IW7) 24A20 1,654.609 CURRENT ASSETS Deb￿rS Cash at bank 12,020 26&109 11020 279JlO 12.110 280.617 12 .129 291J30 292.727 CREDITORS Amounts fa]lTrng due within one year 13 {41W) (4652 16796) (102,621) ET CLIRRENT ASSETS (IU51) 223,784 190,106 TOTAL ASSETS LFSS CURREKI IJABILITIES 1593924 1,848J 1,844,715 CREDITORS Amounts f￿1]ng due after rrwxe than ODe ycar 14 (471,431) (471,431) (498,441) PROVtSIONS FOR LIABILrrtES 16 (Ii(MN)) (12,(KMI) NET ASSETS 254J) 1.110,493 iJ6(&73 lJ34.274 17 Utlrestricted fijnth Restricted filnds 263.915 1.070,359 1,]10893 TOTAL FbNDS lJ61873 1.334274 For the financial year cnded 31st tkcember 2022. the compat)y was elktitled to exa7)ptiOn Under 477 of the coTnpanI￿ Act 2006 relatiag to sulall cornFrdDies. No metoiu5 have required the company to obram an audit of its aco)uDts for the year euded 3 1st December 2022 in 8£cordaDC¢ Wtth section 476 of th¢ Compani<s kn 21x16. The directQTS acknowledge their rest￿]sibIlIti￿ for complying with the requiternents of the Compani£s Act with respect to accounting re¢ord5 9￿d tbe preparation of accounts. Tb¢s¢ ¥¢ounts have beuj pr¢pa￿l in accord￿ with the provi5ion5 apphcAble to com[￿lIeS subjwi to the small cornp3nies' regmje. 023 The financia] statements were approved by the Board of TnL*es aod authoTised fDf isw OD ......... ..... .............-..._--.. MrG D wr￿t. Trustee Pagell

SOUTH HILL CENTRE

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash (used in)/provided by investing activities
Cash flows from financing activities
Loan repayments in year
Net cash used in financing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period		 2022
£
51,993
51,993
(6,175 )
(6,175 )
(47,125 )
(47,125 )
(1,307 )
280,617
279,310		 2021
£
62,912
62,912
-
-
(38,477 )
(38,477 )
24,435
256,182
280,617

The notes form part of these financial statements

Page 12

SOUTH HILL CENTRE

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
2022 2021
£ £
Net income/(expenditure) for the reporting period (as per the Statement of
Financial Activities) 30,599 (9,417 )
Adjustments for:
Depreciation charges 36,264 37,713
Interest on loan 20,678 14,251
Decrease/(increase) in debtors 90 (10,239)
(Decrease)/increase in creditors (35,638) 30,604
Net cash provided by operations 51,993 62,912
ANALYSIS OF CHANGES IN NET DEBT
Net cash At 1.1.22
£		 Cash flow
£		 At 31.12.22
£
Cash at bank 280,617 (1,307 ) 279,310
280,617 (1,307 ) 279,310
Debt
Debts falling due within 1 year (24,139 ) (563) (24,702 )
Debts falling due after 1 year (498,441 ) 27,010 (471,431 )
(522,580 ) 26,447 (496,133 )
Total (241,963 ) 25,140 (216,823 )

2. ANALYSIS OF CHANGES IN NET DEBT

The notes form part of these financial statements

Page 13

SOUTH HILL CENTRE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

INCOME

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Building Fund income received in 2006 from Hertfordshire County Council is treated as a grant in the charity's books, although in form it is prepaid rental for the use of part of the Early Years Centre by the Heath Lane Nursery. In the directors' opinion the substance of the receipt is that it is a grant which is not repayable in the foreseeable future.

There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by the FRS 102 SORP or FRS 102.

Other rechargeable expenses represent the share of operating costs recovered from Heath Lane Nursery and other users of the charity's facilities.

Donations and all other receipts from fundraising are reported gross and the related fundraising costs are reported in other expenditure.

If the charity has deferred income, it includes such income in the current year and shows the amounts released from deferred income in previous accounting periods separately.

Gift Aid receivable is included in income when there is a valid declaration from the donor. Any Gift Aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor of the terms of the appeal have specified otherwise.

The charity has received no donations in kind during the period.

Interest received is accounted for when received. Any tax recoverable relating to interest income is accounted for in the same period as the related income.

VOLUNTEERS

The value of volunteers' time is not included in the accounts but is described in the Directors' Report.

EXPENDITURE

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Support costs have been allocated between governance costs and other support. Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice.

The charity made no redundancy payments during the reporting period.

The charity has creditors which are measured at settlement amounts less any trade discounts.

continued...

Page 14

SOUTH HILL CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES - continued

TANGIBLE FIXED ASSETS

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - in accordance with estimated useful life of the property Fixtures and fittings - 20% on cost Office equipment - 20% on cost

TAXATION

The Company has been granted charitable status and is therefore not liable to corporation tax on income insofar as income is either not taxable under general principles or is specifically exempted by statute.

FUND ACCOUNTING

The Unrestricted Funds represent the unrestricted income which is expendable at the discretion of the directors in the furtherance of the objects of the charity. Such funds can be held in order to finance both working capital and capital resources. Designated Funds are set up where the directors consider it prudent to provide reserves for special purposes.

Restricted Funds are set up where donors specify the purposes for which their donations can be used and expenditure in respect of these purposes is specifically allocated to these funds.

RESERVES

The directors have considered the level of reserves they wish to retain, appropriate to the charity's needs and described this in the Directors' Report. This is based on the charity's size and the level of its financial commitments. The directors aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The directors will endeavour not to set aside funds unnecessarily.

2. DONATIONS AND LEGACIES

Gifts
Donations
Other grants and income
Gift aid tax claim		 2022
£
250
11,225
344,539
2,269
358,283		 2021
£
3,000
18,950
299,620
1,973
323,543

3. OTHER TRADING ACTIVITIES

Facility hire and rental income
Covid grant
Other income
Other rechargeable income
Fundraising activities		 2022
£
-
-
2,428
2,367
286
5,081		 2021
£
88
20,570
22,541
92
80
43,371

continued...

Page 15

SOUTH HILL CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

4. INVESTMENT INCOME

Interest received
INCOME FROM CHARITABLE ACTIVITIES
Activity
Facility hire and rental income
Rental Income
Service charge
Rental Income
Fees paid
Activity fees
CHARITABLE ACTIVITIES COSTS
Charitable Activities		 2022
£
149
2022
£
120,883
15,000
28,295
164,178		 2021
£
565
2021
£
53,623
13,000
38,073
104,696
Direct
Costs
£
497,092

5.

6. CHARITABLE ACTIVITIES COSTS

7. TRUSTEES' REMUNERATION AND BENEFITS

There were no Directors' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021.

The aggregate value of donations received from Directors or parties related to the Director's during the year was £5,100 (2021 - £2,250)

Parties connected to various Directors are employed by the company and received remuneration for services rendered to the company, as authorised by Clause 5 (b) of the Memorandum of Association.

Those employed during the year and related to Directors are Brian Boggis's son-in-law, Jeremy Keeley (Centre Development and Operations Manager); his daughter, Naomi Keeley (Finance Assistant of South Hill Centre), his granddaughter Brodie Keeley (Caretaking Assistant); and his son-in-law Neil Harden (BBO Lite Learning Mentor).

They received the following emoluments and employers NI contributions:

Wages and salaries
Employers NI contributions		 2022
£
83,718
8,225
91,944		 2021
£
79,026
7,047
86,073

Directors were reimbursed for out of pocket expenses incurred in connection with the running of the company. All such expenses are subject to the same internal controls as any other expenditure.

TRUSTEES' EXPENSES

There were no trustees' expenses paid for the year ended 31 December 2022 nor for the year ended 31 December 2021.

continued...

Page 16

SOUTH HILL CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

8. STAFF COSTS

----- Start of picture text -----
|||| |---|---|---| |2022|2021| |£|£| |Wages and salaries|272,581|283,090| |Employers NI contributions|14,690|14,054| |Pensions contributions|10,430|10,636| |297,701|307,780|

----- End of picture text -----

No employees received emoluments in excess of £60,000.

The average monthly number of employees during the year was as follows:

----- Start of picture text -----
||| |---|---| |2022|2021| |22|23|

----- End of picture text -----

The total amount paid to key management personnel (including trustees and senior management) for their services to the charity totalled £81,850 (2021 - £67,521).

9. NET INCOMING RESOURCES FOR THE YEAR

----- Start of picture text -----
|||| |---|---|---| |This is stated after charging|2022|2021| |£|£| |Depreciation|36,264|37,713| |Independent Examiner's remuneration|1,230|1,200|

----- End of picture text -----

10.

TANGIBLE FIXED ASSETS

----- Start of picture text -----
|||||| |---|---|---|---|---| |Fixtures| |Freehold|and|Office| |property|fittings|equipment|Totals| |£|£|£|£| |Cost| |At 1 January 2022|1,995,586|101,769|18,872|2,116,227| |Additions|-|4,225|1,950|6,175| |At 31 December 2022|1,995,586|105,994|20,822|2,122,402| |Depreciation| |At 1 January 2022|361,033|85,783|14,802|461,618| |Charge for year|26,178|8,267|1,819|36,264| |At 31 December 2022|387,211|94,050|16,621|497,882| |Net book value| |At 31 December 2022|1,608,375|11,944|4,201|1,624,520| |At 31 December 2021|1,634,553|15,986|4,070|1,654,609|

----- End of picture text -----

continued...

Page 17

SOUTH HILL CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Other debtors
VAT		 2022
2021
£
£
11,016
10,927
779
784
225
399
12,020
12,110

12. CASH AT BANK

Santander Current Account
Deposit Accounts
Santander Instant reserve
YD petty cash
Total		 General
funds
£
138,552
77,580
51,974
3
268,109		 Restricted
funds
£
11,201
-
-
-
11,201		 2022
Total
funds
£
149,753
77,580
51,974
3
279,310		 2021
Total
funds
£
151,210
77,474
51,930
3
280,617

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans and overdrafts (see note 15)
Trade creditors
Other creditors
Accruals and deferred income
Accrued expenses		 2022
£
24,702
3,158
1,357
37,304
1,025
67,546		 2021
£
24,139
1,401
1,369
74,712
1,000
102,621

DEFERRED INCOME

Amount
£
Deferred income brought forward 01/01/22 74,712
Utilised in the year (74,712)
Receipts in 2022, deferred to 2023 37,304
Deferred income held as at 31/12/22 37,304

continued...

Page 18

SOUTH HILL CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

14.
CREDITORS: AMOUNTS FALLING DUE AFTER
Bank loans (see note 15)
15.
LOANS
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Bank loans
Amounts falling between one and two years:
Bank loans - 1-2 years
Amounts falling due between two and five years:
Bank loans - 2-5 years
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more 5 yr by instal
16.
PROVISIONS FOR LIABILITIES
Redundancy pay provision
17.
MOVEMENT IN FUNDS
Unrestricted funds
General funds
Restricted funds
Restricted funds
TOTAL FUNDS		 MORE THAN ONE YEAR
Net

movement
At 1.1.22
in funds
£
£
263,915
58,688
1,070,359
(28,089 )
1,334,274
30,599		 2022
£
471,431
2021
£
498,441
2022
2021
£
£
24,702
24,139
24,702
24,728
74,108
79,111
372,621
394,602
2022
2021
£
£
12,000
12,000
Transfers
between
At
funds
31.12.22
£
£
(68,223 )
254,380
68,223
1,110,493
-
1,364,873

continued...

Page 19

SOUTH HILL CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

17. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General funds
Restricted funds
Restricted funds
TOTAL FUNDS
Comparatives for movement in funds
At 1.1.21
£
Unrestricted funds
General funds
283,776
Restricted funds
Restricted funds
1,059,915
TOTAL FUNDS
1,343,691
Comparative net movement in funds, included in the above are as follows:
Unrestricted funds
General funds
Restricted funds
Restricted funds
TOTAL FUNDS		 Incoming
resources
£
262,788
264,903
527,691
Net
movement
in funds
£
43,904
(53,321 )
(9,417 )
Incoming
resources
£
190,313
281,862
472,175		 Resources
expended
£
(204,100 )
(292,992 )
(497,092 )
Transfers
between
funds
£
(63,765 )
63,765
-
Resources
expended
£
(146,409 )
(335,183 )
(481,592 )		 Movement
in funds
£
58,688
(28,089 )
30,599
At
31.12.21
£
263,915
1,070,359
1,334,274
Movement
in funds
£
43,904
(53,321 )
(9,417 )

continued...

Page 20

SOUTH HILL CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

17. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General funds
Restricted funds
Restricted funds
TOTAL FUNDS		 At 1.1.21
£
283,776
1,059,915
1,343,691		 Net
movement
in funds
£
102,592
(81,410 )
(21,182)		 Transfers
between
funds
£
(131,988 )
131,988
-		 At
31.12.22
£
254,380
1,110,493
1,364,873

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General funds
Restricted funds
Restricted funds
TOTAL FUNDS		 Incoming
Resources
Movement
resources
expended
in funds
£
£
£
453,101
(350,509 )
102,592
546,765
(628,175 )
(81,410 )
999,866
(978,684 )
21,182

18. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 December 2022.

19. OTHER DISCLOSURE ISSUES

The charity does not have any commitments not provided for in the accounts. The charity has not given any guarantees.

The charity has not received any loans secured on any of its assets other than disclosed in Note 14 & 15 above. At the year end the charity did not have any contingent liabilities.

continued...

Page 21

SOUTH HILL CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

20. RISK ASSESSMENT

The Directors are aware of the need to properly manage and mitigate the risks faced by the company. Details of how the charity has achieved this are provided in the Directors' Report. The directors confirm that they have paid due regard to the Charity Commission guidance on risk assessment when adopting and implementing policies for the charity

21. PUBLIC BENEFIT

The charity acknowledges its requirements to demonstrate clearly that it must have charitable purposes or "aims" that are for the public benefit. Details of how the charity has achieved this are provided in the Directors' Report. The directors confirm that they have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the charity should undertake.

22. DECLARATIONS

Sufficient resources are held in appropriate form to enable each fund to be applied in accordance with any restrictions imposed.

The trustees have not changed the year end date nor length of the charity's financial year. The charity did not make any material ex-gratia payments during the year. None of the charity's fixed assets have been revalued during the year.

Page 22

SOUTH HILL CENTRE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

INCOME AND ENDOWMENTS
Donations and legacies
Gifts
Donations
Other grants and income
Gift aid tax claim
Other trading activities
Facility hire and rental income
Covid grant
Other income
Other rechargeable income
Fundraising activities
Investment income
Interest received
Charitable activities
Fees paid
Facility hire and rental income
Service charge
Total incoming resources
EXPENDITURE
Charitable activities
Wages
Rent and rates
Insurance
Photocopier
Accountancy fees
Cleaning and maintenance
Staff costs and training
Operating costs
Utilities
Travelling
Computer expenses
Carried forward		 2022
£
250
11,225
344,539
2,269
358,283
-
-
2,428
2,367
286
5,081
149
28,295
120,883
15,000
164,178
527,691
287,271
8,216
7,398
1,390
8,959
12,665
2,252
95,352
9,508
6
2,382
435,399		 2021
£
3,000
18,950
299,620
1,973
323,543
88
20,570
22,541
92
80
43,371
565
38,073
53,623
13,000
104,696
472,175
297,144
1,689
6,753
1,081
8,748
9,295
1,735
82,982
7,341
25
3,450
420,243

This page does not form part of the statutory financial statements

Page 23

SOUTH HILL CENTRE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

Charitable activities
Brought forward
YD- Service charge
Pension
Depreciation-freehold property
Depreciation-fixtures fittings
Depreciation-office equipment
Total resources expended
Net income/(expenditure)		 2022
£
435,399
15,000
10,429
26,178
8,267
1,819
497,092
497,092
30,599		 2021
£
420,243
13,000
10,636
26,178
9,301
2,234
481,592
481,592
(9,417 )

This page does not form part of the statutory financial statements

Page 24